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September 2008

Bitcoin Breaks $12,000 Amid Global Recession Concerns



Bitcoin price broke $12,000 USD for the second time in three days on Wednesday as the notoriously volatile cryptocurrency develops a reputation among investors as a safe-haven currency amid concerns as the global economy heads towards recession. This takes BTC’s week-on-week gains to $2,000 USD.

Following on from 2018’s cryptocurrency crash, BTC enjoyed six months of steady increases during the first half of 2019. However, in June the price of BTC nosedived yet again with nearly $4,000 USD being knocked from its value in under a week. After some wild fluctuations over the summer months, which saw BTC’s value fluctuate between $9,000 USD and $13,000 USD, it would appear that the world’s premier cryptocurrency is back on track as share prices topped $12,000 USD for the second time this week.

A Safe Haven for Investors

While a week of positive price movements for BTC could be followed by another dive, some market speculators believe that the only way is up. One particular reason for this speculation is BTC’s emerging reputation with investors as a safe-haven amid fears that a global recession is on the horizon. According to The Block, a Bitcoin and cryptocurrency industry website, the catalyst was unusually high Bitcoin volume on Binance, the world’s largest Bitcoin and crypto exchange. This could be as a result of investors seeking shelter in Bitcoin, as uncertainty hangs over traditional currencies.

Political uncertainty across the globe has had a damaging effect on traditional markets, with the ever-increasing possibility of a No-Deal Brexit and Trump’s escalating trade war with China. Yesterday, China’s yuan currency hit its lowest point in over a decade.

Mati Greenspan, senior market analyst at brokerage eToro, said, “Of course, [the falling yuan] is one possible explanation, but so is Brexit for that matter, the possibility of a no-deal Brexit could very well have people hedging themselves against the potential of another large leg down for the pound sterling.”

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Alternative Factors

Other possible triggers for the bump in BTC stock include a halving in block rewards for miners of Litecoin, the world’s fourth-largest cryptocurrency by market value. This means that the number of tokens Litecoin miners receive has been cut from 25 to 12.5—known as a halvening. Halvenings are seen as a positive event for cryptocurrency prices as they tighten demand. Bitcoin will undergo a halvening in May 2020 when rewards for miners will fall from 12.5 to 6.25.

Featured image: DepositPhotos © AntonMatyukha

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Matic Network (MATIC) Slumps After Rallying Earlier This Year

Matic Network

Matic Network

The growth of the cryptocurrency space saw the launch of a wide range of tokens over the past few years, and one of the tokens that has been in the news over the past few months is the one belonging to the Matic Network (MATIC).

Down 75% in the Past Two Days

The token rose dramatically since the end of September and rocketed by as much as 300% as more and more investors bought into the project. However, the token’s downward spiral commenced just as quickly over the past few hours and has declined by an astonishing 73%.

The meteoric rise in the price of the token was brought about by a range of developments that seemed to indicate that the Matic Network token’s use cases were being expanded. The possibility of the expansion of use cases resulted in a massive rally in the token, and before long, it went on a strong bull run.

However, it is believed that many of the investors and traders are fearful that the whole thing might have been an exit scam. Hence, large scale dumping of the token has been in progress over the past few hours, and it remains to be seen whether the bulls can stop this slide.

Back in the middle of November, it was announced that the network had actually tied up with big-ticket gaming company Altitude Games. That particular announcement resulted in one of the biggest rallies ever witnessed by the token, as it skyrocketed by as much as 215%.

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On November 15, the token was trading at $.0135, but on December 8, it had shot up to an astonishing $.0427, and just when many might have thought that the rally was going to continue, it came crashing down over the past few hours. At this point in time, many investors might be wondering whether the Matic Network token can actually make a comeback or not.

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Bitcoin Price | New One Year High of Almost $9,000

Bitcoin Price

Bitcoin Price

Since Monday, bitcoin price has leaped 13.5% to hit new levels at around $9000 for the first since May last year in what is seen as a bullish sign. At the time of writing, bitcoin is trading as high as $8,810 on Coinbase.

Bitcoin Price | Highest Since 2018

Yesterday’s jump brings bitcoin to a maximum year to date increase of around 142.40%. Could this be the end of the 2018 bearish phase that saw bitcoin price lose over 70% from its all-time high of $20,000. Bulls are starting to believe that bitcoin will soon retest its all-time highs although it is still short of the current price target of $11,500.

Bitcoin has been given a buy rating by a number of analysts and this sentiment is based on commentary from industry players like Fidelity Investment resulting in the momentum of the coin. As of March this year the Boston based form which manages assets worth over $2.3 trillion indicated that it will begin offering bitcoin trading services to a number of its customers.

However, there are those who hold the presumption that bitcoin is currently overvalued. JPMorgan Chase analysts noted recently that the rate at which bitcoin price is climbing is beyond its intrinsic value. However many crypto enthusiasts have slammed the claims stating that the banking giant did not accepted bitcoin since the beginning and is just being stubborn.

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Potential Pullback 

As the bearish and bullish arguments go on there are technical analysts who have predicted bitcoin to reach a six-figure rate. However, these analysts believe there will be a significant pullback in price before the rallying begins. Cryptocurrency investor and trader Josh Rager said that based on the historical behavior of bitcoin price there is a possibility of correction of around 30% on every top formation. Another crypto analyst, Cred, also foresees a bitcoin price scenario as low as $6,182 because of the overbought conditions before a breakthrough to around $10,000.

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Tether Introduces New Yuan-Linked Stablecoin, CNHT



The cryptocurrency space has had its fair share of controversies throughout the course of its short existence, and one of the biggest ones to date is the one related to stablecoins. There are plenty of stablecoins in circulation these days, but the most controversial one so far is Tether, and it is simply due to the fact that is it is the most popular one within this particular group of digital assets.

Key Analysis

The reason why many in the crypto space are suspicious of Tether and other stablecoins is because most of them are backed 100% by the United States dollar (or another fiat currency). However, it goes without saying that for many traders, Tether has its own uses, and it has become quite popular over the years.

The controversies surrounding Tether are not going to stop it from growing further, and today the stablecoin issuer announced that it has launched another stablecoin, only this one is going to be backed by the Chinese Yuan. The one backed by the US Dollar is known as the USDT, and the newly launched token is going to be called the CNHT. It should be noted that the Tether platform has also produced the EURT, which is backed 100% by the Euro. Due to the launch of this new digital asset, Tether has stated that the world’s main fiat currencies can now be put to proper digital use.

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Tether has had a controversial history so far and is subject to lawsuits related to security laws violations. In addition to that, it has also been alleged that Tether has been used by rogue traders to artificially prop up the price of Bitcoin and other cryptocurrencies. It is a problematic allegation since such actions might point to a pump and dump scheme by way of which gullible investors might end up losing a lot of money. It remains to be seen how the latest digital asset is welcomed by the crypto space.

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